The PepeSwap Project

📈 Introduction

The current bull run can be credited to a large degree to automated market makers (AMMs) and DEXes. Uniswap is the first large scale DEX that has helped accelerate the overall evolution of DeFi protocols. By creating liquidity and bringing new ways for users to exchange and trade their cryptocurrencies the floodgates of new projects were opened, bringing to life projects that would have had no chance during CEXs times.

Liquidity pools enable traders to easily swap in a fully decentralized and non-custodial way. Uniswap became one of the most successful DeFi projects as they were able to bring AMMs to be used on a large scale. After Uniswap there were lots of projects that are attempting to improve the AMM design with their own implementations.

Sushiswap is the most successful Uniswap forks, that at the time of the launch brought the SUSHI governance token as an improvement.

Inspired by Uniswap and Sushiswap, PepeSwap aims to bring liquidity to smaller but active projects in the DeFi space while at the same time rewarding contributors.

With that in mind we have designed PepeSwap that inherits Uniswap’s liqudity farming mechanics, and the added community-oriented features of SushiSwap to provide further benefits to the actors involved.

🎨 Protocol Design

💧 Liquidity Provider Incentives

We have maintained the same benefits as with SushiSwap when it comes to liquidity providers.

While with Uniswap, liquidity providers earn the pool’s trading fees and are potentially entitled to UNI rewards at some time in the future. With PepeSwap, liquidity providers earn rewards in the form of PEPE tokens on a continues basis.

With Uniswap once the liquidity providers have withdrawn their portion of the pool, they no longer receive that passive income.

Also with larger protocols such as Uniswap the protocol gains traction, despite being early liquidity providers, they risk getting their return diluted as (bigger and wealthier) stakeholders join the protocol with a huge amount of capital.

With PepeSwap, one can also provide some liquidity into a pool and earn rewards in the form of PEPE tokens and those PEPE tokens will also entitle you to continue to earn a portion of the protocol’s fee, accumulated in the PEPE token, even when no longer participating in the liquidity provision.

And the biggest advantage as an early adopter / provider of liquidity, you become a significant stakeholder of the protocol.

The earnings received from staking are proportional to the amount of LPs you have staked versus the total amount of LPs staked. Unless you continue to provide liquidity, your holdings and corresponding reward earnings will gradually be diluted.

👨‍🌾 Token Distribution

To start providing liquidity and earning PEPE tokens, anyone holding the intial Uniswap LP for the pairs that are active at the start can stake those LP tokens into the corresponding initial list of pools.

At every block, 100 PEPE tokens will be created. These tokens will be equally distributed to the stakers of each of the supported pools.

However, For the first xxxx blocks (~5 days), the amount of PEPE tokens produced will be 10x, resulting in 1000 PEPE tokens being minted per block. This is to incentivize early farmers and adopters of the protocol.

The initial set of available pools:

• DeFi Stablecoins: DAI-ETH
• PEPE pool: PEPE-ETH

Once we launch the community can propose to add more eligible pools.

💸 Reward Distribution

With the current Uniswap configuration, 0.3% of all trading fees in any pool are proportionately distributed to the pool’s liquidity providers. In PepeSwap, 0.25% go directly to the active liquidity providers, while the remaining 0.05% get converted back to PEPE and distributed to the PEPE token holders 📈.

🕑 Ensuring Project Sustainability

In order to support the long term development of the project 10% of every PEPE distribution is set aside for marketing and development costs.

🔐Protocol Usage and Security

At the protocol and smart contract level, PepeSwap shares a similar interface to SushiSwap. We will work with various DeFi and other ecosystem tools to start integrating SushiSwap.

Security is important to us and as such we have tested extensively that everything works on the testnet.

As the protocol will grow and we will have the funds to cover it we will invite external providers to audit the contracts.

💻 Smart Contracts

The contracts are available at https://github.com/…:

🍣 SushiToken: The token contract, with COMP/YAM voting functionality.
👨🏻‍🍳 MasterChef: Deposit LPs tokens to farm SUSHI.

All contracts written by us should have somewhat reasonable test coverage. We will continue to do more testing. If any of you think there’s any issue with it, please let us know (preferably privately if it’s a severe issue) via our Telegram.

🏁 How You Can Participate

You can start depositing LP tokens to the available pools on the farm website at:

PEPE farming has started from block xxxx and it will have a 10x reward up to block xxxx. Hurry and stake you LP tokens prior to that for maximum gains

💬 Join Us!

• Join discussion in our Telegram at:
• Don’t miss any update by following us on twitter.com/pepe_swap